Mehabe score: 6 G Factor: 3 Piotski Score: 7 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 7.
Description
Shreyas Shipping & Logistics is a leading player in coastal shipping sector.Site:SHREYASMain Symbol:SHREYAS
Stock trades at 206.0, above its 50dma 191.13. It also trades above its 200dma 127.71. The stock remains bullish on techicals
The 52 week high is at 240.00 and the 52week low is at 45.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.07 times its book value
Weakness
– The company has delivered a poor sales growth of -1.22% over past five years.
-Tax rate seems low
– has a low return on equity of 7.19% for last 3 years.
-Earnings include an other income of Rs.35.20 Cr.
-Dividend payout has been low at 6.26% of profits over last 3 years
-Promoter holding has decreased over last 3 years: -4.31%
Competition
– The industry trades at a mean P/E of 20.7x. SEAMEC Ltd trades at the industry’s max P/E of 45.38x. SHREYAS trades at a P/E of 4.81x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 8.0. SHREYAS has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 12.8%. The max 1- month return was given by Global Offshore: a return of 100.68 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 189.0 cr compared to Rs 111.0 cr for period ended Jun 2020, a rise of 70.3%
Company reported operating profit of Rs 46.0 cr for period ended Jun 2021, operating profit margin at 24.3 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 21.56 compared to Rs 14.34 for previous quarter ended Mar 2021 and Rs -4.51 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 638.0 cr for period ended TTM vis-vis sales of Rs 560.0 cr for the period ended Mar 2021, a healthy growth of 12.2%. The 3 year sales cagr stood at 0.7%.
Operating margins expanded to 17.0% for period ended TTM vis-vis 11.0% for period ended Mar 2021, expansion of 600.0 bps.
Net Profit reported at Rs 102.0 cr for period ended TTM vis-vis sales of Rs 44.0 cr for the period ended Mar 2021, rising 56.9%.
Company recorded a healthy Net Profit CAGR of 50.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 137% on a 1 Year basis vis-vis a return of -24% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 661% vis-vis a compounded profit growth of -23% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.25% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 30.81% vis-vis 31.06% for Mar 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.07 times its book value – The company has delivered a poor sales growth of -1.22% over past five years.
-Tax rate seems low
– has a low return on equity of 7.19% for last 3 years.
-Earnings include an other income of Rs.35.20 Cr.
-Dividend payout has been low at 6.26% of profits over last 3 years
-Promoter holding has decreased over last 3 years: -4.31%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 191.13 and is trading at 206.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
